Grant Cardone Is Now a Bitcoin Fanboy — Here’s Why

Grant Cardone has long valued real estate as his primary asset class. He doesn’t buy gold or stocks, and he was initially skeptical of Bitcoin. However, he has turned into a Bitcoin bull and is accumulating the asset.

Check Out: Grant Cardone: Stop Doing These 5 Things That Make Everyone Else Rich

In a recent interview, Cardone explained what prompted him to change his stance and shared how Bitcoin and real estate have great synergy.

Also see why Cardone says you can’t build wealth working 9-to-5.

Bitcoin and Real Estate Have Scarcity

Bitcoin has built-in scarcity, similar to real estate, per Cardone. He explained that both real estate and crypto people value scarcity.

There are only 21 million Bitcoin, and only about 1 million haven’t been mined yet. Once all of the Bitcoin is mined, there is no way to produce additional Bitcoin. A central authority doesn’t have the ability to print more Bitcoin and significantly devalue the asset over time. Meanwhile, fiat currencies have that problem, which is why Cardone referred to saving and storing cash as “a loser’s bet.”

real estate also has scarcity. For example, while the quantity of real estate housing can increase due to construction, builders can work only with the land that is still available.

The similarities between real estate and Bitcoin have contributed to Cardone feeling more bullish about Bitcoin. He said Bitcoin and real estate have a “natural symbiotic relationship.”

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People Aren’t Going To Sell Their Bitcoin

Cardone has stated that he will never sell any of his Bitcoin, and he may not be the only one. In fact, Bitcoin’s appreciation will further increase the likelihood that investors hold on to their crypto.

This assertion isn’t only because of Bitcoin’s intrinsic scarcity, long-term potential and store of value. It also has to do with capital gains. If an investor has $100,000 in capital gains in Bitcoin and was looking to buy property, Cardone said they wouldn’t cash it out and instead would borrow fiat currency against their crypto. “You’re not going to trade your Bitcoin. Why would you?” he said.

If people hold on to their Bitcoin, its value will go up. Investors should also keep in mind that some Bitcoin will never enter the market again, as some people have lost access to their crypto positions. While the industry has become more advanced and offers more ways to mitigate this risk, it still decreases the total number of available Bitcoin.

Bitcoin as a Store of Value

Cardone views Bitcoin as a store of value that can retain value compared with fiat currencies and other assets. Unlike other assets, Bitcoin has done a robust job of not just outperforming inflation but also delivering higher returns than key benchmarks like the S&P 500 and Nasdaq.

Cardone even has a Bitcoin real estate fund, which gives investors exposure to real estate and Bitcoin. The Bitcoin position in the fund will grow as Cardone invests real estate cash flow into Bitcoin. This strategy combines the stability of real estate with the high return potential of cryptocurrencies. According to Cardone, it’s a better alternative than holding on to fiat currencies, which are guaranteed to lose substantial value in the long run.

In theory, an investor using Cardone’s model could use real estate cash flow to buy stocks, gold or any other asset instead. But Cardone isn’t a fan of gold and stocks.

He views stocks as trading a piece of paper for another piece of paper. For instance, you’re trading fiat currency for a certificate of ownership for the shares you purchase.

Precious metals like gold and silver also present the “store of value” argument. However, Cardone stated that he has never been offered the opportunity to use gold or silver to cover a transaction. Meanwhile, thousands of companies let customers use Bitcoin as a method of payment. Those customers prove Bitcoin’s viability as a medium of exchange.

Cardone sees Bitcoin as a better store of value than cash. He isn’t a fan of stocks and precious metals, and the numbers certainly back him up. Although the timeless argument of stocks versus real estate will have varying opinions, Bitcoin’s returns have comfortably trumped those assets over the past decade.

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This article originally appeared on GOBankingRates.com: Grant Cardone Is Now a Bitcoin Fanboy — Here’s Why

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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